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Hatteras Financial (HTS) -2.6% AH after announcing a 15M share stock offering, good for proceeds...

Hatteras Financial (HTS) -2.6% AH after announcing a 15M share stock offering, good for proceeds of $421M based on today's close. Hatteras intends to use the proceeds to buy mortgage-backed securities. It also plans to "borrow against the agency securities through repurchase agreements and use the proceeds of the borrowings to acquire additional agency securities."
Comments (1)
  • goldbaum
    , contributor
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    It seems to me that the new stock issue is not dilutive to current stockholders. If the company is going to use the proceeds of the new stock sale to purchase mbs and then proceed to do the usual leveraging to produce profits for stockholders,then the new capital will produce its own profit without diluting the profits of the current stockholders. It would stress the confidence that management has in their business model going forward,specially after listening to mr. Bernanke earlier today.
    26 Mar 2012, 07:42 PM Reply Like
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